Running a privately held business is a very large challenge. On a daily basis, owners are confronted with a countless series of interdependent issues that require their decision-making abilities. One of these issues is the future ownership of the business by someone else. More succinctly stated, the issue is whether or not, you the owner of the business, are taking actions today with the decisions that are being made in the business that will increase or decrease the likelihood of having success in finding someone else who will be able to run your business in the future.
Owners who are thinking about the future and are asking the question “who will own my business next?” need to consider two (2) very important questions in preparation for a future transition. The first question is “Is My Company Transferable? The next question is “how do I go about Creating A Transferable Business™?” This newsletter provides five (5) steps that owners can take in Creating a Transferable Business™. It is written with the intention of having you think through the transferability of your business and what decisions you can make today that will make your business easier to transition to a new owner in the future.
The Five (5) Steps in Creating a Transferable Business™
The following five (5) steps can assist you in Creating a Transferable Business™. They are:
- Adopt an Exit Planning Process and Mindset
- Measure and Manage your Company’s Owner Dependence
- Assess Your Current Management and Support Team
- Understand and Evaluate Your Industry Transfer Statistics
- Review and Act Upon Your Company’s Relative Performance
This newsletter will introduce these five (5) steps so that you, the owner of your business, can, today, begin to take action in the specific direction of Creating a Transferable Business™.